Trading houses, the term trading house  or trading company is used to describe all these various types of international traders including those who specialize in importing as well as exporting.

Export Merchant

Export Merchant, this is a trading company that will buy the local firm's goods outright and assume the risk of being able to resell them profitably abroad.

The export merchant usually specializes in a particular line of products and/or in a particular geographical market area. Sometime it sells the goods with the original supplier's labels or puts its own label.

Export Agent

An export agent, is a trading company that acts for local manufacturers, usually representing a number of non-competing manufacturers.

In return for obtaining export order from abroad, the export agent receives a commission.

Unlike the export merchant, the agent does not become the owner of the goods and therefore does not assume the risk of not being able to sell them abroad.

An export agent is usually retained on one or two years renewable basis with an export agency agreement.

The function of the export agent is to appraise the export potential of the local manufacturer's products, advertise them abroad, look for foreign buyers, obtain export orders, and advise on, or arrange for, the documentation, shipping and insurance once a sale has been made.

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"...manufacturer can benefit from export
know-how and personal contacts from
the export merchant or agent..."
Direct Exporting
Resident Foreign Buyer
Resident Foreign Buying Agent
Advantage of Indirect Exporting
Disadvantage of Indirect Export

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